Hong Kong-based financial technology firm Dragon Inc. has inked a strategic partnership with Grand Korea Leisure Ltd. to incorporate its Ethereum/ERC20-based Dragon Blockchain platform and its Dragon Coin crypto-token in VIP gaming rooms at GKL’s three Seven Luck-branded casinos. Dragon Inc. hopes to open its first Seven Luck crypto VIP room by April.
According to CalvinAyre.com, South Korea is “a cryptocurrency hotbed.” Dragon’s business model is based on reducing the estimated 5 percent charge that junkets pay to move funds from Mainland China to regional gaming hubs such as Macau, Junket customers, meanwhile, pay anywhere from 5 percent to 7 percent to repatriate their winnings.
Dragon says the use of DRG to fund the cross-border purchase of Dragon Global Chips will slash these costs to about 1 percent (0.5 percent each way), improving junket profitability and increasing the stake money for gamblers.
In a press release, Dragon said its technology will bring greater “speed, security and convenience” to VIP play at the casinos run by the Seven Luck brand and reduce fees for high rollers.
Dragon says it has the support of four Macau junkets, and denied media reports linking Dragon to notorious triad figure Wan “Broken Tooth” Kuok Koi. Dragon CEO Chakrit Chris Ahmad said Wan is “not involved in Dragon and he is not financing Dragon in any way.”
Dragon is seeking its own Macau junket license and plans to introduce a network of DRG-compatible Global Cash Machines for installation in all affiliated VIP rooms. Dragon also plans to launch its own floating cashless casino/hotel in Macau that will be known as Dragon Pearl, which hopes to open to the public in early 2021.
The Seven Luck brand has three foreigner-only casinos in South Korea: two in the capital Seoul and one in the southern port city of Busan, reported GGRAsia. The brand’s parent is Grand Korea Leisure Co Ltd., a subsidiary of the Korea Tourism Organization, which in turn is affiliated with the South Korea’s Ministry of Culture, Sports and Tourism.
Business risk consultant Steve Vickers, a former senior Hong Kong policeman, told GGRAsia that cryptocurrencies may make it possible for users to sidestep China’s efforts to stem capital outflow.
